Q90. As recorded in the SSC CHSL paper held in March 2018, how many recognised exchange entities were cited under SEBI?
[SSC CHSL, 25 Mar, Shift 3 2018]
A. 20
B. 10
C. 9
D. 15
Answer: (C) 9
Explanation: The answer recorded for this historical examination was nine. Counts of recognised stock and commodity exchanges can change with mergers, permissions and closures; this figure should not be applied automatically to later years.
Q89. Which among export growth, stockpiling, credit expansion and drought is mainly a demand-side inflation factor?
[MPSC Rajyaseva GS I 2018]
A. Drought
B. Expanded bank credit
C. Supply stockpiling
D. An adverse harvest
Answer: (B) Expanded bank credit
Explanation: Credit expansion can increase spending power and exert demand-pull price pressure. A drought or goods stockpiling typically constrains supply, creating a different pathway through which commodity prices can rise.
Q88. In a 2018 commerce examination, which authority was identified as the body regulating the sanction of foreign exchange for importing goods?
[UPPSC LT Grade Commerce, 29 Jul 2018]
A. Exchange banks alone
B. Reserve Bank of India
C. External Affairs Ministry
D. None of these
Answer: (B) Reserve Bank of India
Explanation: The RBI administers central aspects of India’s foreign-exchange regulatory framework under FEMA, though authorised dealers implement much routine trade settlement. The historically worded examination attributed the principal regulatory role to RBI.
Q87. What was the principal objective of establishing Small Finance Banks?
[UPSC CSE Prelims 2017]
A. Improving credit access for small firms and small farmers
B. Financing only multinational firms
C. Restricting rural lending
D. Replacing the monetary-policy committee
Answer: (A) Improving credit access for small firms and small farmers
Explanation: Small Finance Banks were licensed to extend basic banking services and small-value credit to underserved borrowers, including micro-enterprises and small farmers. Their purpose is greater inclusion, not exclusive large-corporate finance or replacement of monetary policymaking.
Q86. Which statement about the Monetary Policy Committee is correct?
[UPSC CSE Prelims 2017]
A. It fixes the policy repo rate and is chaired by the RBI Governor
B. It is chaired by the Finance Minister
C. It consists only of external government nominees
D. It publishes corporate equity ratings
Answer: (A) It fixes the policy repo rate and is chaired by the RBI Governor
Explanation: India’s MPC is a six-member body chaired by the RBI Governor. It decides the policy repo rate to pursue the inflation target. Three members are from RBI and three are appointed externally by government under the statutory framework.
Q85. Why was the Scheme for Sustainable Structuring of Stressed Assets (S4A) introduced?
[UPSC CSE Prelims 2017]
A. To promote household savings
B. To restructure difficult corporate loans
C. To regulate public-sector disinvestment
D. To create a new currency unit
Answer: (B) To restructure difficult corporate loans
Explanation: S4A was an RBI framework for dividing large stressed corporate debt into sustainable and unsustainable portions to enable restructuring. It concerned borrower debt resolution, not fiscal privatisation programmes, currency issue or management of ordinary retail savings.
Q84. What is a likely effect of the Unified Payments Interface?
[UPSC CSE Prelims 2017]
A. Direct bank payments can reduce reliance on separate mobile wallets
B. It guarantees total elimination of cash
C. It automatically doubles foreign direct investment
D. It replaces all welfare programmes
Answer: (A) Direct bank payments can reduce reliance on separate mobile wallets
Explanation: UPI connects bank accounts for payments without necessarily loading funds into a separate wallet. Its adoption made interoperable instant transfers convenient. It does not logically imply the end of cash or guarantee specific investment and welfare outcomes.
Q83. State Financial Corporations in India were created principally to support which enterprises?
[WBCS Mains 2017]
A. Large multinational enterprises alone
B. Farming co-operatives exclusively
C. Foreign governments
D. Small and medium industrial concerns
Answer: (D) Small and medium industrial concerns
Explanation: State Financial Corporations were set up to provide term finance and financial assistance to industrial units, especially smaller enterprises that could lack access to capital markets. They were part of the institutional development-finance network.
Q82. What types of securities does RBI buy and sell in open market operations?
[WBCS Mains 2017]
A. Government securities
B. Farm commodities
C. Private insurance contracts
D. Direct tax receipts
Answer: (A) Government securities
Explanation: Open market operations involve RBI buying or selling government securities to influence monetary liquidity. Purchases inject funds into the system while sales remove them, making these operations a key market-based monetary instrument.
Q81. Which two years are associated with the two major Narasimham financial-sector reform committee reports?
[WBCS Mains 2017]
A. 1991 and 1998
B. 1980 and 1985
C. 2001 and 2010
D. 1994 and 2004
Answer: (A) 1991 and 1998
Explanation: The first Narasimham Committee report appeared in 1991 and the second in 1998. Together they shaped banking reform debates about competition, prudential supervision, non-performing assets and the restructuring of financial institutions.
